The Power of Purposeful Business

Alex Edmans

A chapter in Rethinking Economics Starting from the Commons, 2023, pp 81-90 from Springer

Abstract: Abstract Purpose is the corporate buzzword of today, with politicians, the public, and even shareholders calling on businesses to serve wider society. But purpose is also controversial, because companies have a responsibility to deliver returns to investors. These objections are based on a fixed-pie mindset, that serving stakeholders is at the expense of shareholders. This article discusses the power of purpose in growing the pie, creating value for both investors and society—as a result, purpose has a business and financial case, not just a moral and ethical case. It discusses how companies can put purpose into practice, including in difficult times such as a pandemic, and how citizens can play their part in their role as employees and customers.

Date: 2023
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DOI: 10.1007/978-3-031-23324-1_7

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